Kenya recently raised its debt ceiling from Sh5 trillion to Sh9 trillion after surpassing the earlier ceiling by a trillion. Empirical research has proven that the most ideal and sustainable debt to GDP ratio is between 28-35 per cent. Our National Treasury has for the longest time raised this to 50 per cent and tinkered with figures to justify any increase. The recent increase of the debt ceiling means our debt to GDP ratio will now stand at 92 per cent, if Treasury were to exhaust this fiscal window/space, going by past behaviour. Sixth, its time to establish the loans and grants council to help regulate debt for both national and county governments.

Source: The Star November 24, 2019 03:11 UTC